Small Business Value Addition

Small Business Value Addition.

Value-addition describes the enhancement a company gives its product or service with a feature or add-on that gives it a greater sense of value, before offering the product to customers. Value-added applies to instances where a firm takes a product that may be considered a homogeneous product, with few differences (if any) from that of a competitor, makes it better and provides potential customers. Following are some ways to add value to your product or service.


  • Multiplication is duplication of entire process or system.
  • By creating more identical business systems based on a proven model, multiplication can expand business’s ability to deliver value to more customers.
  • Multiplication is what separates small businesses from huge businesses.
  • For example, Walmart, success lies in multiplying two interconnected systems, stores and distribution centres.

  • Distribution centres multiply the ability to receive inventory from suppliers and deliver it to stores.
  • Stores replicate system of receiving, displaying and selling inventory to paying customers.
  • There is an upper limit on what any single business system can produce.
  • That’s the major benefit of franchising.
  • Instead of reinventing a business model, opening a franchise help multiply a model that already works.
  • The easier it is to multiply a business system, the more value you can ultimately deliver.


  • A small twig a small restructure, a bit of material or effort saved.
  • Alone, the change may not look like much. Taken together however the effects are huge.
  • Small, helpful or harmful behaviours and inputs tend to accumulate over time, producing huge results.

  • Accumulation isn’t always positive.
  • Think about what happens to your body if you consume nothing but fast food, candy bars and soda, for a decade.
  • Eating a single candy bar is not a big deal, but eating hundreds of candy bars is.
  • Small improvements in your diet, a little more exercise and a little more sleep can have major effects on your health over time.
  • At this very moment, a Toyota engineer somewhere in the world is making a very small change to the Toyota production system; one of the most efficient manufacturing systems in the world.
  • Toyota employees implement over one million improvements to the Toyota production system every year.
  • Toyota is now the largest and most valuable automotive manufacturer.
  • Small improvements consistently implemented, inevitably produce huge results.
  • If your offer improves with every iteration cycle it won’t be long before your offer is many times more valuable to your customers than it was before.
  • Small changes to your delivery process can save you a lot of time and energy in the long run.
  • The more improvements you make over time, the better the results.


  • The best way to identify amplification operation is to look for things that are consistently duplicated or multiplied.
  • The effect of any improvement or system optimisation is amplified by the size of the system.
  • Making a small change to a scalable system produces big results.
  •  Scalable systems can amplify the results of small changes.
  • The larger the system the larger the result.
  • When McDonald’s comes up with a new burger, they are not limited to selling it in just one of their stores, they start selling it in all their stores around the world.

Look at your competitors to understand how to make the best use of value addition in business. Similarly, I have discussed in my previous posts how you can look at some of your competitors’ websites to get an idea about building your own website, which is value addition for yourself. If you don’t have a website for your business yet, your next step must be to get a website now. This is your home base and all of your internet endeavours will run to and from it. As a starting point, you can contact an online media consultant to help set-up the website per your requirement. Selecting a domain and figuring out a quality hosting plan to get off the ground, the design and layout of your site, all of these can be taken care of by HyperEffects. You may also use the insights you gleaned from your competitive research and select something that’s clean, engaging and simple. Contact us today for our free one hour consultation session especially designed for small business owners.

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